8 ms·
Lots of drivers behind this: - For many companies, the main buying criteria for an ATS is EEOC compliance and the ability to report on their % diversity, veter
by redmattred 14y ago
Lots of drivers behind this:
- For many companies, the main buying criteria for an ATS is EEOC compliance and the ability to report on their % diversity, veteran, etc hires.
- The buyer in an ATS sale in many cases is the CFO, not the HR dept. HR is often not seen as a strategic part of the organization, so even if they understand the value of a streamlined applicant process, they don't always have the policitcal capital to lobby for a better system.
- Often an ATS is purchased as part of a suite of other software (payroll, onboarding, etc.) and a software vendor basically just needs to check the ATS box.
- The switching cost for replacing an existing ATS is high, so even if there are better alternatives, many companies will avoid changing unless they have to.
- Application processes are sometimes designed to be more cumbersome than they need to be to screen out more candidates upfront. This is common especially in lower level positions.
- Certain more user friendly application workflows are patented.
It's an extremely crowded market with long buying cycles that requires an enterprise sales force and also requires you to keep up with employment law in 50 states. Your best bet is to specialize on a niche with unique demands.